CFMEU $3m transfer ‘stinks to high heaven’, says Murray Watt

Workplace Relations Minister Murray Watt has attacked the NSW CFMEU for transferring $3.15m of union members’ funds to pay for lawyers, declaring the move ‘stinks to high heaven’.

Building union delegates meeting at Moonee Valley racecourse in Melbourne on Thursday vote in favour of a campaign to support the CFMEU.

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Workplace Relations Minister Murray Watt has attacked the NSW CFMEU for transferring $3.15m of union members’ funds to pay for lawyers for state secretary Darren Greenfield and his son Michael to fight bribery charges, declaring the move “stinks to high heaven”.

As union leaders privately criticised the union’s decision, Senator Watt said the conduct reinforced how many of the union’s former leaders were acting in their own interests.

The Australian revealed this week that the diversion of funds came two days after the ­Albanese government announced on July 17 the union would be forced into administration.

Documents show the union’s branch committee of management on July 19 endorsed “in the best interests of the branch” the transfer of $3.15m to Sydney law firm, McGirr & Associates, which is representing the Greenfields.

Senator Watt said the ongoing allegations against the leadership of the CFMEU were serious.

“The apparent transfer of more than $3m funds from the NSW CFMEU branch to the trust account stinks to high heaven and is now a matter for the administrator to investigate,” he said.

“This information was only uncovered because the Albanese government took strong action to appoint (administrator Mark) Irving. Sadly, this type of behaviour shows again that too many of the CFMEU’s former leaders were acting in their own self-interest, not in the interests of their members.”

Senator Watt’s criticism came as building union delegates endorsed a second rally next week protesting against the CFMEU administration and pledged to get 1000 Victorian companies signed up to a 21 per cent pattern pay deal.

Union delegates representing construction workers, electricians, plumbers and metalworkers also backed a summit of blue-collar unions to consider setting up a rival bloc to the ACTU. About 800 delegates from four blue-collar unions voted to hold the rally next Wednesday, with workers to march from Trades Hall to the offices of the Master Builders Association of Victoria. Protests are also expected in Sydney and Brisbane.

Electrical Trades Union Victorian secretary Troy Gray said a new “line in the sand” campaign would run for the life of the administration and include ongoing rallies and “any industrial action which we may or may not have”.

Recent capital city protests against the government legislation enabling the takeover of the CFMEU construction divisions included a rally by 50,000 workers in Melbourne.

Delegates also backed a Target 1000 campaign which aims to have 1000 contractors signed up to the Victorian CFMEU pattern agreement in the next 12 months.

The state agreement endorsed by members before the divisions were placed under administration provides for a 21 per cent pay rise over four years.

But union leaders speaking after the meeting said some employers were now holding out on signing up to the agreement, or backtracking on agreed pay rises, in the wake of CFMEU divisions being put into administration.

CFMEU national secretary Zach Smith, who addressed the meeting held at Moonee Valley racecourse, said administration would not stop the union signing up agreements.

“Employers in Victoria should be on notice that there will be no tolerance for people trying to undermine wages and conditions of construction workers,” he said.

“The clear message is this: administration is not an opportunity for the MBA or the bosses to undermine hard fought and won wages and conditions of construction workers.”

Mr Smith said agreements were starting to be approved by the Fair Work Commission, after some delays, including a deal with major builder Multiplex.

In a flyer to be circulated to CFMEU members, the union says “fat cat bosses want to pay you less and take away your safety standard but we will not let them”.